Everyone gets old eventually – including your parents. But while you can’t stop father time, you can prepare for his arrival with aa policy that will help pay for the long-term services your parents may need as they get older. These types of policies for nursing homes, home care, hospice services and occupational therapy.
But there are other options that can help you prepare for your parents’ aging, including a special type of long-term care insurance plan known as. This type of policy offers coverage for certain types of services as they age and also offers similar cash benefits as a traditional life insurance policy.
Start shopping for long term care insurance policies online today.
Should your parents buy hybrid long-term care insurance?
If you want to make sure your parents have the right long-term coverage and that you’ll be able to take care of everyone after they’re gone, a hybrid long-term care insurance policy may be the best move. Here’s why:
Long-term care can eat into savings
Long-term care services can be very expensive. The average cost of a room in a nursing home is more than $9,000 a month, according to Genworth’s latest Care Cost Survey. In turn, those costs could become insurmountable at some point, regardless of what resources you have at your disposal. However, if you purchase a long-term care policy, some of these costs will likely be covered by the insurance policy.
Long-term care insurance works like any other insurance policy. youin exchange for coverage for services you need later in life.
And, theis between the ages of 55 and 65, says Jesse Slom, director of the Long-Term Care Insurance Association of America. After that, it becomes increasingly difficult to meet the requirements that health insurance providers have for these types of policies.
So, if you have a parent who is at or nearing that age, it might benefit you to talk to them about how they can fit long-term care insurance into their budget right now. Otherwise, they could end up paying a lot more later.
Don’t wait – start looking at long-term care insurance policies now.
Hybrid policies help cover expenses after death
Life insurance can help a person’s surviving family deal with many of the expenses associated with death. This can include funeral expenses, legal fees and expenses related to probate.
This is where hybrid long-term care insurance comes into play. These policies combine long-term care insurance benefits with death benefits that are generally paid when the insured dies.
However, each plan works differently. Some only pay a death benefit if there are unused long-term care benefits left. Others have a certain death benefit that you get no matter what. Some pay a minimum death benefit plus any other unused money earmarked for long-term care services.
“People like the fact that if they don’t need long-term care, their beneficiaries benefit from receiving the death benefit,” says Slome.
Slome notes, however, that these policies are more expensive than a regular long-term care insurance policy. As such, it may be important to talk to your parents about their current life insurance funds to help them determine if fitting a hybrid policy into their budget makes sense.
Peace of mind may be worth the cost
Above all, having a hybrid long-term care policy can offer you and your parents some peace of mind. Not only will they have coverage for the care they need, but they won’t have to cut costs to afford it.
Furthermore, knowing that cash will come your way to cover expenses after they die can also offer peace of mind. After all, the average funeral costs between $7,000 and $12,000, according to a 2023 study by insurance company Lincoln Heritage. That could wreak serious havoc on your finances if you’re not prepared — but the death benefit of a hybrid long-term care insurance policy can help any fear is alleviated.
A hybrid long-term care insurance policy provides money for long-term care services and death benefits. If your parents buy this type of policy, it can help ensure that they are taken care of as they age and that there is money left over to cover expenses after they are gone.
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